Chainlink (LINK) has been in the spotlight recently, with its price experiencing a correction over the past week. However, amidst this dip, a significant trend has emerged: whales, or large investors, have been accumulating LINK tokens in large quantities. This has sparked optimism among some analysts, suggesting a potential rebound for the cryptocurrency.
Whales Accumulate LINK During Correction
A post by crypto analyst Ali Martinez revealed that Chainlink whales accumulated a staggering 6.2 million LINK tokens, worth roughly $76.88 million, in the past week. This buying spree coincided with a 9.71% price drop for LINK, leading some to believe it represents a classic “buy-the-dip” strategy by these large investors.
Market Value to Realized Value (MVRV) Hints at Undervaluation
Further bolstering the bullish sentiment is LINK’s MVRV ratio, which currently sits at 11.1%. This metric indicates that the token might be undervalued, potentially presenting an attractive entry point for new buyers.
LINK Price Shows Signs of Recovery
Interestingly, despite the weekly downtrend, LINK’s price has exhibited some positive signs. At the time of writing, the token is up 4.71% in the last 24 hours, currently trading at around $13.44. This upward movement aligns with the whale accumulation and favorable MVRV ratio.
Increased Investor Interest and Derivatives Activity
Data from Coinglass also suggests a rise in investor interest in LINK. The platform reported a significant increase in both LINK’s Futures Open Interest (OI) and derivatives volume. This suggests that investors are actively trading LINK derivatives, potentially anticipating future price movements.
Also Read: Chainlink Up 16% In Bullish Breakout, Eyes $17 Resistance
Uncertain Future Trajectory
However, the current sentiment remains cautiously optimistic. The token’s Relative Strength Index (RSI) sits around 46, indicating market neutrality. While on-chain data paints a promising picture, the short-term price direction of LINK is yet to be determined.
Potential for $20 Price Target?
Recent analysis by Coingape Media suggests that LINK’s price could even reach $20, fueled by the positive on-chain factors discussed above. Whether this prediction materializes remains to be seen, but the current whale activity and technical indicators are certainly intriguing for LINK investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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